January 27, 2017
Does a receiver have an obligation to comply with Worker Adjustment and Retraining Notification (“WARN”) Act, 29 U.S.C. § 2101-2109? The short answer is no. While no Michigan state court has addressed this specific issue, the federal courts have addressed it in the context of reorganizing and liquidating failed banks. The courts have consistently and unanimously held that the WARN Act does not apply to receivers appointed to reorganize or liquidate a failed bank. In reaching this conclusion, the courts agree that a receiver is not an “employer” under the WARN Act, and therefore, the receiver is not required to provide notice as proscribed by the WARN Act.